North America agar market is projected to grow at a CAGR of 4.61% during the forecast period, 2020 - 2025.
- Increasing demand for natural ingredients coupled with the rising inclination of consumers towards vegan/vegetarian products are factors expected to support the growth of the North American agar market over the forecast period. The increasingly health-conscious populace is showing more inclination toward healthier substitutes.
- Agar owing to its ability to absorbs glucose in the stomach draws the attention of manufacturers willing to formulate weight-managing food products. The product passes through the digestive system quickly and inhibits the body from retaining and storing excess fat, thereby aiding in weight loss.
Key Market Trends
Confectionery Holds a Prominent Share in the Market
Owing to the multifunctional properties served by the ingredient to the confectionery products, primarily effectuating organoleptic perception and texture attributes of products such as candies and chocolates, the industry remains the largest consumer for food-grade agar among other application segments. Acknowledging the diverse application and future potential in the market, manufacturers are heavily investing in research and development to come up with innovative products or technology, in order to claim the exceptional contribution in the market.
The United States Drives the Regional Market
The United States owing to its larger consumer base and heavy consumption holds the largest share in the regional market. Moreover, the growing vegan population in the country is another factor driving consumers from animal-based gelatin to plant-sourced agar while formulating food and beverage food products. According to Top Trends in Prepared Foods in 2017 report, 6% of the U.S. population now identifies as a vegan. Apart from this, the health benefits of agar are a major driving factor for the market. It improves bone health, reduces anxiety, maintains hearth health, improves satiety, and minimizes the feelings of hunger.
North America agar market is fragmented with a large number of regional small-medium scale players and key global players. Manufacturers are focusing on offering clear-label and organic agar products due to major trends involving indulgence, clear labels, and protein enrichment taking place in the food industry. Companies offering food grade agar are also adopting various strategies like asset purchases, mergers and acquisitions, joint ventures/collaborations, R&D efforts, investments, and new product launches to garner market dominance.
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